Sri Mulyani Can Make A State Budget Not Deficit As Long As The Subsidy Is Revoked, Are You Ready?

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance stated that the 2023 APBN deficit was set at IDR 598.2 trillion. This figure is a reflection of larger state spending with IDR 3,061.2 trillion compared to revenues of IDR 2,463 trillion.

Minister of Finance (Menkeu) Sri Mulyani said that the story of this year's APBN considers a number of strategic aspects. One of the things that was revealed was the allocation of the subsidized budget which was quite large.

"If the state budget wants to be balanced, that's fine. But I will not pay (electric subsidy costs) IDR 171 trillion to PLN. Then, to Mrs. Nicke (Managing Director of Pertamina) I did not pay (subsidies/compensation for fuel) IDR 379 trillion. That can make the (deficit) APBN directly IDR 0," he said when answering a question from the Finance Director of PLN Indonesia Power Endang Astharanti, Friday, February 3.

The Minister of Finance said that the realization of subsidies last year reached IDR 555 trillion. This figure is greater than the 2022 APBN deficit which amounted to IDR 464.3 trillion. This means that if the government did not provide fuel and electricity subsidies last year, the state budget would not only be free from deficits but instead recorded a surplus of IDR 90.7 trillion.

"Then if the subsidy is revoked (demen APBN balance), you (PLN and Pertamina) answer it by increasing the electricity and fuel tariff. If that's the case, go ahead, but later you will be scolded by the Indonesian people. So it's only as simple as that is actually," he said.

Meanwhile, in the 2023 State Budget Law, the value of subsidies this year is IDR 298.5 trillion. The budget will be directed to be more targeted, integrated and support MSMEs, farmers and public transportation services.